Coincheck reintroduces some of its services to customers in Japan. There are plans to roll over other services into its already introduced services but on a hold pending the verification process.
On Tuesday, Coincheck Inc., which is a subsidiary of Monex Group, a Japanese financial services giant announced that its customers based in Japan could open new accounts, deposit, and buy some selected cryptocurrencies. Earlier in January, Coincheck was the talk of the town as its platform was hacked with over $500 million worth of digital tokens stolen. After the hack, most of its services were suspended.
Coincheck Services to be reintroduced
However, the exchange in February began reintroducing some of its services. It began with withdrawal in Japanese Yen before slowing selling and remitting cryptocurrencies between March and June. Nevertheless, today, customers can open new accounts and deposit cryptocurrencies such as Ethereum Classic (ETC), Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC). Additionally, customers can buy BTC, LTC, ETC with BTC, which after the hack was never suspended.
Only customers based in Japan can have access to these new services. The reintroduction of these services follows the plan of the exchange to improve its governance and internal control. Before reintroducing these services, Coincheck had sought verification of the technical safety of its platform and products from external experts.
Undoubtedly, the company is doing all possible to prevent another hack, which has been a major issue for them. Reports from Japan’s Financial Services Agency indicated that it planned to take necessary actions by fining Coincheck for its subpar security. Additionally, the hack left the company seeking for capital desperately, which gave the Monex Group the opportunity to buy the cryptocurrency exchange. According to Finance Magnates, the deal was worth $3.2 million, which is equivalent to ¥360 million.
Coincheck Plans to introduce additional Services
The reintroduction of its services isn’t just a welcome development for Coincheck but also good for Monex Group because the Group revenues have been dwindling since its acquisition. This is because it has only achieved limited revenues because of its restricted services.
In its second-quarter report of the Group’s fiscal year ending March 2019, Coincheck reported a segment loss of approximately ¥600 million. However, in its first-quarter report, there was also a loss but was slightly less when compared to the second quarter report.
The reintroduction of its main services could spell greater performances in its upcoming quarter reports. Nevertheless, how swiftly will this be? Will Coincheck recover from the previous hack?
In another development, the company has announced its plan to resume other services such as allowing customers to buy and deposit FCT, XRT, LSK, XEM, and ETH. There are also plans to reintroduce affiliate service, leverage transactions for new positions, JPY depositing via convenience stores etc. The services are on hold pending when the safety of these services has been verified.